However, there is no fixed rule to apply. As soon as the parish priest ceased to live in the presbytery, tax exemption was threatened. The argument here is that once the rectory is leased to a third party, its revenues are not reasonably necessary for the purposes of the Church and are primarily used and dedicated. This is because it can be difficult to show that a rented house that is not used for religious purposes is reasonably necessary for religious worship. According to the Internal Revenue Service, “where an exempt organization regularly carries on a business or transaction that is not significantly related to its exempt purpose, unless it provides means to achieve that purpose, the organization is subject to taxation of its income from that business or self-employed activity.” However, in the case of income from the rental of an ecclesiastical presbytery, unless the presbytery is financed by debt, this income is “excluded in the calculation of the unrelated taxable income of the enterprise”. 7. GIVE UP. After the pastor moves out of the church, the pastor agrees to return the presbytery to the church in the same condition as at the reception, except for appropriate wear and tear and with all keys and remote opening devices. Before handover, the pastor, the parish president and the parish pastor conduct a final inspection and note in writing any damage. In the event of damage that exceeds ordinary usury and is caused by the pastor, members of his family or immediate hosts, the pastor is financially responsible for pledging the presbytery in its previous state. Otherwise, it can lead to supervisory conversations and discipline of the pastor, as prescribed in the Book of Discipline. If the cost of the damage caused by the thieves is greater than what the pastor can pay immediately, the church, pastor, and DS can draft a payment agreement for the district where the church is located. 8.
REGULAR INSPECTION. The pastor and the Church make the annual inspection of the presbytery, in accordance with the provisions of the guidelines and recommendations for ecclesiastical residences and the disciplinary book of the Evangelical Methodist Church. The pastor acknowledges that failure to conduct such an inspection is his responsibility and protects against charges for the damage found. 9. RISK OF LOSS; INSURANCE. The pastor is solely responsible for purchasing appropriate insurance from the tenant. The pastor bears the risk of loss, including, but not limited to, losses resulting from theft, vandalism, rain, floods, fire, earthquakes, corrosion, mudslides, earth movements or force majeure, on all personal property of the pastor or vehicles located on or in connection with the occupation of the presbytery by the pastor. Pastor: _________________________________________________________Church _______________Printed ___________________________________Printed__________________________________________________________________Printed ____________________Acknowledged______________________ this is the case, most scenarios will be at least a partial exemption from property tax let it do it. The situation in which the presbytery will be rented, however, will come into play. This is not limited, but is not limited to who lives there, how long and how much rent will be collected.
Another consideration is whether or not the Church is responsible for federal income tax. The same scenario above is conceivable if the income is obtained from a clergyman and the rental of the presbytery is accidentally and reasonably necessary for the religious use of the church. . . .